Updated 7 months ago on . Most recent reply
Possible 8 unit deal, help!
An opportunity of purchasing 2 4-unit apartment buildings has presented itself.
Currently being rented at $630-$650 per unit ( low for the area) all 2/1.
The current owners have had this for 17 years but are getting too old to keep up with it and are asking $500k for it.
What are some things I should ask and also how do I introduce the idea of seller finance?
Most Popular Reply
When looking at a potential 8-unit deal, a thorough due diligence process is crucial to make an informed investment decision. Here are key areas and questions to explore:
- Rent Roll & Rental Income
- Operating Expenses
- Vacancy & Tenant Stability
- Inspection & Assessments
- Maintenance History
- Title & Zoning
These are just a few of the starting points to ask about. It's important to consult with a qualified real estate attorney and other relevant professionals (e.g., inspectors, accountants, property managers) to help navigate the due diligence process and ensure an educated investment decision.
To introduce the idea of seller financing, you'll need to approach the conversation strategically and highlight the benefits for both parties. Hire a qualified attorney specializing in seller financing to draft and review the necessary legal documents and ensure compliance with state and federal regulations, where specific rules may apply.
- J Castro
